International Competitiveness of ChinaÕs Construction Firms

Abstract

The purpose of this paper is to review the international competitiveness of Chinese Construction Firms (CCFs). Whilst foreign business for Chinese contractors has developed rapidly over the last few decades, the relative share of international revenue still remains lower than European and American contractors. Given the current downturn in construction activity in China, it is paramount for Chinese firms to increase their international competitiveness. In the past, Chinese government support Chinese contractors to penetrate African market. However, in globalisation, Chinese contractors tended to focus on the construction market in Africa may no longer be sustainable. Efforts are now being made to diversify into Asia and South America but Chinese contractors also seek effective pathways to improve their competitiveness, in order to expand business in global construction markets as evidenced by the recent launch of the Asian Infrastructure Investment Bank (AIIB) initiated by China. In order to assess CCFs' competitiveness in the global construction market, this paper will utilise a comprehensive literature review and secondary data analysis to outline the government policy in construction industry background and identify the current issues of Chinese contractors' international competitiveness.